Before we get into the Texas Reserve and what it is, first: a story.
Hyperinflation was a major economic problem that occurred in the Weimar Republic of Germany during the early 1920s. It was caused by a combination of factors, including the government's decision to print large amounts of money to pay for the costs of World War I, the loss of productive capacity due to the war, and the heavy reparations demanded by the Treaty of Versailles.
As a result of these factors, the supply of German marks in circulation increased rapidly, while the economy struggled to keep up with the demand for goods and services. This led to a situation where prices rose rapidly, sometimes on a daily or even hourly basis, making it difficult for people to afford basic necessities such as food, housing, and clothing.
At its peak in November 1923, prices in Germany were doubling every two days. Workers were paid multiple times a day so they could buy goods before prices rose even further. People used wheelbarrows of cash to buy basic goods, and bartering became more common as the currency became worthless.
Hyperinflation had a devastating impact on the German economy and society. It wiped out the savings of many Germans and destroyed the middle class, while benefiting those who held tangible assets like property, stocks, and gold. It also led to social unrest, as workers went on strike and people protested against the government.
The hyperinflation crisis was eventually resolved when the government introduced a new currency, the Rentenmark, which was backed by land and industrial assets. The government also instituted economic reforms, including measures to balance the budget, reduce spending, and control the money supply.
Sounds eerily similar to America's current position, huh?
In the event of hyper inflation gold would SHOOT through the roof as the value of the dollar fell exponentially.
This is why Texas Senate Introduced House Bill 4903
As a way to restore "Sound Money" as described in the constitution, and give Texans the authority of sovereign wealth again.
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This would still require the centralized control of the Texas Comptroller, and i believe this choice was made out of ignorance for blockchain technology and what we can accomplish with it.
Before we go further I'd like to Introduce
PAXG is a digital asset that represents physical gold stored in professional vaults. Each PAXG token is backed by one fine troy ounce (t oz) of a 400 oz London Good Delivery gold bar, which is held in custody by Paxos Trust Company.
PAXG is an ERC-20 token that runs on the Ethereum blockchain and is designed to enable users to own and trade physical gold in a digital form. PAXG was launched by Paxos, a New York-based financial technology company that is regulated by the New York State Department of Financial Services (NYDFS).
The idea behind PAXG is to offer the benefits of gold ownership, such as a hedge against inflation and economic uncertainty, without the drawbacks of physical gold ownership, such as storage and transportation costs. PAXG can be bought and sold on various cryptocurrency exchanges and can also be redeemed for physical gold through Paxos.
PAXG has gained popularity among investors and traders looking for exposure to gold without actually owning the physical asset. PAXG can also be used as a pairing crypto on various decentralized exchanges (DEXs) to trade other cryptocurrencies. In this instance, the team will be pairing PAXG to $TEXAS as the lp.
( HOW TO BUY)
SWAP YOUR $ETH TO $PAXG AND THEN SWAP YOUR $PAXG TO $TEXAS
BUY PAXG HERE
CA: 0x45804880De22913dAFE09f4980848ECE6EcbAf78
https://app.uniswap.org/#/swap?outputCurrency=0x45804880de22913dafe09f4980848ece6ecbaf78
THEN BUY TEXAS RESERVE $TEXAS HERE
https://app.uniswap.org/#/swap?outputCurrency=tba
So what Texas Reserve aims to do, is create a DECENTRALIZED digital currency, backed by gold, on the ethereum blockchain.
In addition to this, they will be partnering with FCFPAY.IO to roll out TexPay, a virtual/physical debit card solution, allowing $TEXAS to be bought and sold as normal attached to apple pay, google pay, or in person with the card.
Now hedging against inflation refers to strategies that investors and businesses use to protect themselves from the negative effects of inflation on the value of their assets and income. Inflation is the gradual increase in the general level of prices for goods and services in an economy over time, which means that the purchasing power of money decreases.
Hedging against inflation involves taking steps to offset the impact of inflation on the value of assets and income. One common way to hedge against inflation is to invest in assets that are expected to increase in value as prices rise, such as commodities like gold, real estate, and natural resources. These assets have historically been seen as inflation hedges because their prices tend to rise in response to inflation, thereby preserving the purchasing power of invested capital.
Another common way to hedge against inflation is to invest in securities that provide returns that are expected to outpace inflation, such as stocks and bonds that provide dividends or interest payments that increase with inflation. Some investors also choose to invest in inflation-protected securities, such as Treasury Inflation-Protected Securities (TIPS), which are designed to keep pace with inflation by adjusting the principal value of the bond.
Hedging against inflation is important because inflation can erode the value of savings and income over time, making it more difficult to maintain a stable standard of living. By taking steps to protect against inflation, investors and businesses can help ensure that their assets and income maintain their purchasing power over time.
The teams goal is this, help the state of texas generate the beta precursor to what will become the result of house bill 4903, encourage web3 investors to hedge against their investment by purchasing $TEXAS - backed by $PAXG as the ONLY liquidity pool.
We aim to create generational wealth, a positive powerful financial solution, and a "way out" from what is inevitable in this country.
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